Can you finance your slice of Paradise Island as a non-resident? You can, and many buyers do. You want a clear path that respects your time, your privacy, and your investment goals. In this guide, you’ll learn who lends, what terms to expect, which documents to prepare, how long it takes, and the local nuances that matter on Paradise Island. Let’s dive in.
Can foreigners buy on Paradise Island?
International buyers can purchase condos and freehold estates across The Bahamas, and Paradise Island is a well-known market for non-residents. Some specific land types can carry restrictions, so you should confirm any permit or approval needs with a Bahamian attorney. Your non-resident status mainly affects lender appetite and loan terms, not your ability to own.
How Bahamas mortgages work for non-residents
The Bahamian dollar is pegged 1:1 to the U.S. dollar, and many lenders price and repay mortgages in BSD or USD. You should plan for cross-border wires, foreign-exchange fees, and proof of source of funds. Lenders follow Bahamian and international AML and KYC standards, so expect enhanced due diligence. Mortgage providers operate under the Central Bank of The Bahamas’ regulatory framework, so verify a lender’s local licensing before you proceed.
Where financing comes from
Local Bahamian banks
Major Bahamian-licensed banks commonly offer residential mortgages and know the local title and condo landscape well. Non-resident borrowers usually face stricter underwriting and lower maximum LTVs than citizens. Processes are well established for Paradise Island properties.
Mortgage finance companies
Specialist mortgage providers may offer products suited to second homes or investment condos. Structures can be more flexible, but underwriting still aligns with local standards and documentation.
International and private banks
High-net-worth buyers sometimes borrow from private banks or lenders in their home country. Terms depend on the lender’s policy and ability to take security over Bahamian property through local registration.
Developer financing
For new Paradise Island condos, developers sometimes provide seller financing for part of the price. These options often use shorter terms or interest-only periods during construction, with details varying by project.
Typical loan terms to expect
LTV ranges
For non-residents, typical maximum LTVs fall in the 50% to 70% range. Strong local relationships and citizenship can push higher, but foreign buyers should plan for larger down payments.
Rates and fees
Most mortgages are variable or adjustable with a lender margin over local market rates, and foreign buyers often pay a premium. Expect application and processing fees, a valuation fee, and legal costs. Some loans may require mortgage insurance at certain LTV thresholds.
Amortization and repayment
Common amortization periods are 15 to 30 years, depending on your profile and the product. Developer financing may be shorter or structured to match construction milestones.
Collateral and security
Lenders take a mortgage or charge over Bahamian title. Proper registration in the local registry is required, and lenders will order an independent valuation and title search.
Documents you will need
Build your file early. A well-organized package helps underwriting and shortens the timeline.
- Identity and status: passport copy and proof of residency in your home country if applicable
- Financial capacity: recent pay stubs or employer letter, two to three years of tax returns, three to six months of bank statements, and statements for other assets
- Credit and references: a home-country credit report and reference letters from your bank or accountant
- Property and transaction: executed purchase agreement, condo bylaws and insurance info for condos, lender-ordered valuation or inspection, and evidence of property insurance or a quote
- Source of funds and AML: documents supporting your down payment source, beneficial ownership details if using an entity, and enhanced checks if you are a politically exposed person
- Local legal: a Bahamian attorney to handle title, mortgage registration, and escrow instructions
Timeline and key steps
Every deal is unique, but this sequence is a helpful guide from first call to closing:
- Pre-qualification, 1 to 7 days. Discuss goals, property type, and lender fit. This sets expectations for down payment and documents.
- Full application, 1 to 2 days to prepare. Submit your organized package so underwriting can start.
- Valuation and title search, 1 to 3 weeks. Lender orders an independent valuation and a Bahamian solicitor conducts title checks.
- Underwriting and conditional approval, 1 to 4 weeks. Conditions often include insurance binders and proof of funds.
- Final commitment, about 1 to 2 weeks after conditions. You receive a commitment letter outlining terms.
- Closing and registration, 2 to 6 weeks. Funds move, documents record with the Bahamas Land Registry, and you receive keys or follow the developer’s schedule for new builds.
Overall, allow 4 to 12 weeks from application to closing. You can shorten timelines with complete documentation and coordinated parties.
Paradise Island specifics to know
Paradise Island’s inventory spans resort condos and private estates. For condos, lenders review association bylaws, reserves, insurance, and any special assessments. Units in rental programs are often treated as investment properties that may face lower LTVs or tighter coverage tests. If you plan to use short-term rental income to help with payments, lenders may require proven historical income or apply conservative stress tests. Insurers and lenders also look closely at hurricane and flood coverage.
Smart preparation tips
- Get pre-qualified before you negotiate. It clarifies your maximum LTV and closing timeline.
- Assemble AML and source-of-funds documents in advance. This avoids delays when you wire your down payment.
- Confirm your lender is licensed in The Bahamas. Local registration and experience matter.
- Engage a Bahamian real estate attorney early. Title, taxes, and registry steps are local and precise.
- Plan for BSD and USD handling. The peg simplifies pricing, yet you should still allow for wire logistics and possible FX fees.
- Right-size your down payment. Many non-resident loans cap at 50% to 70% LTV.
How MBR Luxury supports your financing
You want a single, trusted point of contact who speaks both property and process. As a boutique brokerage with cross-border coordination experience, MBR Luxury can:
- Introduce you to lenders who are active with non-resident loans on Paradise Island
- Provide a tailored document checklist geared to Bahamian underwriting
- Coordinate valuations, title work, and experienced Bahamian counsel
- Compare offers side by side so you can weigh LTV, rates, fees, and prepayment terms
- Align wire timing, insurance, and closing logistics with your lender and attorney
- Support turnkey ownership through property management after closing
When you are ready, we can align the right lender with the right property so your financing supports your lifestyle and investment goals.
Ready to explore properties and financing?
If Paradise Island is on your horizon, start with a focused pre-qualification and a clean document file. Then match your property goals to the lender category that fits best. For tailored introductions and end-to-end coordination, connect with My Bahamas Realtor Limited to schedule a private consultation.
FAQs
What LTV can a foreign buyer expect on Paradise Island?
- Non-resident buyers commonly see maximum LTVs in the 50% to 70% range, depending on lender, profile, and property type.
Do Bahamian lenders quote in USD or BSD?
- Many lenders operate in BSD or USD with the currencies at parity, and they often reference USD pricing for clarity.
How long does mortgage approval and closing take in The Bahamas?
- From application to closing, a well-organized file typically completes in about 4 to 12 weeks, depending on underwriting and third-party timelines.
Will a lender count projected rental income for a Paradise Island condo?
- Many lenders want proven historical income or will apply conservative stress tests, especially for condos in rental programs.
Do I need a Bahamian attorney for a financed purchase?
- Yes. Lenders require a Bahamian attorney to handle title searches, mortgage registration, and escrow instructions.
What closing costs should I plan for besides the down payment?
- Budget for legal fees, title and registration costs, stamp duty or transfer taxes as applicable, valuation fees, lender application fees, and insurance.
Is developer financing available for new Paradise Island condos?
- Sometimes. Terms vary by project and are often shorter or interest-only during construction.
Can I use my home-country bank to finance a Bahamas property?
- It is possible with some international or private banks, but they must be able to perfect security over Bahamian property through local processes.
